KARACHI: The Pakistan Stock Exchange (PSX) witnessed an unprecedented rally at the beginning of the business week on Monday, May 12, 2025, as a result of which the PSX-100 index closed at 117,297.73 with a gain of 10,123 points. This is the largest daily increase in the history of the PSX, representing an increase of 9.45 percent.
The main reasons for this unprecedented boom include the recent announcement of a ceasefire between Pakistan and India and the $1.4 billion aid from the International Monetary Fund (IMF). The ceasefire was followed by hopes of political stability in the region, which restored investor confidence. The IMF’s financial support raised expectations of an improvement in the economy, which had a positive effect on the stock market.
The index touched an all-time high of 117,327.78 during trading. The market was suspended for an hour when the PSX-30 index rose more than 5%, which is in line with PSX regulations. Significant gains were seen in the banking, energy, and cement sectors, including HUBCO, MARI, OGDC, PPL, PSO, HBL, MCB, and UBL.
Experts say that if the cease-fire lasts and the IMF’s assistance continues, the market is expected to improve further. However, any new tensions or ceasefire violations can have a negative impact on the market.
This historic increase shows how political stability and fiscal support can have a positive impact on the economy and investor confidence.
